BP p.l.c. (GB:BP)
LSE:BP
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BP p.l.c.
(LSE:BP)
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Rating:62Neutral
Price Target:
534.00 p
▼(-1.29% Downside)
Action:Reiterated
Date:05/04/26
The score is held back mainly by weak and volatile bottom-line profitability and higher leverage, despite resilient free-cash-flow generation. Valuation is a clear positive (low P/E and strong dividend yield), while technicals are moderately supportive. The latest earnings call adds a balanced outlook: credible deleveraging/cost actions and solid operations offset by near-term working-capital, refining-margin, and geopolitical risks.
Positive Factors
Free Cash Flow
Sustained positive free cash flow (~$11.4B TTM) provides durable funding for capex, dividends and deleveraging. Strong cash generation cushions commodity volatility and supports management's multi-year net-debt target and capital allocation priorities.
Negative Factors
High Leverage
Leverage rising to ~1.37 materially reduces financial flexibility and raises refinancing risk. Elevated debt versus prior years constrains capital allocation choices, makes deleveraging a multi-period priority and limits buffer against commodity or operational shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow
Sustained positive free cash flow (~$11.4B TTM) provides durable funding for capex, dividends and deleveraging. Strong cash generation cushions commodity volatility and supports management's multi-year net-debt target and capital allocation priorities.
Read all positive factors
BP p.l.c. (BP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£77.84B
Dividend Yield5.73%
Average Volume (3M)26.71M
Price to Earnings (P/E)32.0
Beta (1Y)0.53
Revenue Growth-1.05%
EPS GrowthN/A
CountryUK
Employees100,500
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)0.19
Shares Outstanding15,702,500,000
10 Day Avg. Volume25,231,935
30 Day Avg. Volume26,714,907
Financial Highlights & Ratios
PEG Ratio-19.58
Price to Book (P/B)1.71
Price to Sales (P/S)0.48
P/FCF Ratio8.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£639.58Price Target Upside18.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)0.87
Revenue Forecast (FY)£218.91B
BP p.l.c. Business Overview & Revenue Model
Company Description
BP p.l.c. functions as a global energy corporation. Its activities are structured across four primary divisions: Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Rosneft. The company is engaged in the exploration, pr...
How the Company Makes Money
BP makes money primarily by selling energy and energy-related products and services across multiple segments, with earnings influenced by commodity prices, volumes, and refining and trading margins.
1) Upstream (oil and natural gas production): B...
BP p.l.c. Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational delivery (2.3m boe/d production, top-end refinery availability and highest quarterly throughput in four years), healthy near-term cash generation ($3.2bn underlying net income, $8.9bn operating cash flow) and clear strategic actions (portfolio simplification, cost reductions, hybrid reduction plan and exploration successes including Bumerangue). Headwinds include a $6bn working capital build that increased net debt this quarter, realized refining margin weakness (potential >$5/bbl gap vs. indicator), regional geopolitical disruptions and capital-structure complexity around hybrids. On balance, the company presented multiple tangible positives and a credible plan to strengthen the balance sheet while managing near-term margin and working-capital pressures.Positive Updates
Strong production and refining performance
Produced 2.3 million barrels of oil equivalent per day; refining availability was above the 96% target and throughput exceeded 1.5 million barrels per day — the highest quarterly throughput in four years.
Negative Updates
Working capital build increased net debt this quarter
Operating cash flow of $8.9 billion was followed by a $6.0 billion working capital build, which drove an increase in reported net debt for the quarter and prompted a pause on buybacks to accelerate deleveraging.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong production and refining performance
Produced 2.3 million barrels of oil equivalent per day; refining availability was above the 96% target and throughput exceeded 1.5 million barrels per day — the highest quarterly throughput in four years.
Read all positive updates
Company Guidance
The call’s guidance focused on strengthening the balance sheet and disciplined capital allocation while driving operational performance: a net‑debt target of $14–18bn with buybacks paused in Feb, a plan to reduce the corporate hybrid stack by >$4bn by end‑2027 (first tranches callable in 2026–27; original $12bn hybrid to retain equity treatment), a CapEx frame of ~$13–15bn over the next two years (tightened toward ~$13bn this year), and a target of 100% reserve replacement by 2027 (recent replacement ~90% including a ~15% price effect, ~76% ex‑price). They reiterated a structural cost‑reduction ambition (4–5% target, with another $300m delivered and ~70% of that program completed), and highlighted operational/financial metrics that underpin guidance: production ~2.3m boe/d, Middle East production ~400k boe/d (historically ~100k bpd exported via the Strait of Hormuz), refining availability >96% and throughput >1.5m bpd (highest quarterly in 4 years), Q1 underlying net income $3.2bn and operating cash flow $8.9bn before a $6bn working‑capital build, 14 discoveries since start‑2025 including Bumerangue (~8bn barrels in place), and a warning that realized refining margins could lag the indicator by >$5/bbl if current crude differentials, yields and freight dynamics persist.BP p.l.c. Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
45
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 193.54B | 189.34B | 185.23B | 213.67B | 240.86B | 154.71B |
| Gross Profit | 42.27B | 33.53B | 28.11B | 47.39B | 54.05B | 21.65B |
| EBITDA | 34.84B | 31.07B | 25.11B | 42.89B | 29.37B | 27.82B |
| Net Income | 3.13B | 55.00M | 382.83M | 15.50B | -2.48B | 7.42B |
Balance Sheet | ||||||
| Total Assets | 301.73B | 278.53B | 282.23B | 280.29B | 288.12B | 287.27B |
| Cash, Cash Equivalents and Short-Term Investments | 35.76B | 36.71B | 34.52B | 28.59B | 29.77B | 30.96B |
| Total Debt | 74.17B | 72.53B | 71.55B | 63.08B | 55.49B | 69.79B |
| Total Liabilities | 224.77B | 204.53B | 203.91B | 194.80B | 205.13B | 196.83B |
| Stockholders Equity | 55.96B | 53.05B | 59.25B | 70.28B | 67.55B | 75.46B |
Cash Flow | ||||||
| Free Cash Flow | 11.42B | 11.27B | 12.00B | 17.75B | 28.86B | 12.72B |
| Operating Cash Flow | 24.44B | 24.49B | 27.30B | 32.04B | 40.93B | 23.61B |
| Investing Cash Flow | -11.17B | -11.50B | -13.25B | -14.87B | -13.71B | -5.69B |
| Financing Cash Flow | -11.41B | -15.88B | -7.30B | -13.36B | -28.02B | -18.08B |
BP p.l.c. Technical Analysis
Negative
541.00
Price Trends
545.99
Negative
523.23
Negative
473.33
Positive
Market Momentum
-10.99
Positive
38.53
Neutral
9.82
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP, the sentiment is Negative. The current price of 541 is above the 20-day moving average (MA) of 528.23, below the 50-day MA of 545.99, and above the 200-day MA of 473.33, indicating a neutral trend. The MACD of -10.99 indicates Positive momentum. The RSI at 38.53 is Neutral, neither overbought nor oversold. The STOCH value of 9.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BP.
BP p.l.c. Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £2.93B | 21.39 | 9.72% | 5.64% | 49.70% | -5.56% | |
69 Neutral | £4.34B | -23.64 | -4.05% | 8.77% | 57.55% | -54.80% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | £166.17B | 11.86 | 10.58% | 4.00% | -9.84% | 41.13% | |
64 Neutral | £3.81B | 20.19 | 9.33% | 14.05% | 36.10% | ― | |
62 Neutral | £77.84B | 32.01 | 5.52% | 5.73% | -1.05% | ― | |
58 Neutral | £1.29B | -6.41 | -65.81% | 10.99% | 27.35% | -228.25% |
* Energy Sector Average
GB:BP
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GB:ENOG
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GB:ITH
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.